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Sunday April 21, 2024

Gold rate rises in Pakistan despite recovery in rupee

Gold regains lost ground as bargain hunting trickle in after prices dropped a day earlier

By Business Desk
February 23, 2023
An undated image of a customer looking at the gold bangles at a store. — AFP/File
An undated image of a customer looking at the gold bangles at a store. — AFP/File

Gold bounced back on Thursday, as bargain hunting trickled in after prices dropped a day earlier in response to the continued recovery of the Pakistani rupee against the US dollar.

Data released by the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold (24 carats) increased by Rs500 per tola and Rs429 per 10 grams to settle at Rs196,100 and Rs168,124, respectively.

Gold is considered an inflation hedge, but is highly sensitive to rising interest rates, which increase the opportunity cost of holding the non-yielding bullion.

Cumulatively, the yellow metal gained Rs3,800 per tola during the last three sessions (Monday-Wednesday); however, the precious commodity snapped its winning streak today.

Meanwhile, silver prices in the domestic market fell by Rs30 per tola and Rs25.72 per 10 grams to settle at Rs2,120 per tola and Rs1,817.55 per 10 grams, respectively.

In the international market, gold prices were little changed as traders waited for US growth data for more clues on the pace of Federal Reserve rate hikes and stronger dollar-capped advances. The price settled at $1,826 per ounce after a decline of $14.